In a speech delivered at Georgetown University on Thursday, Keith Noreika, head of the US Office of the Comptroller of the Currency (OCC), provided updates on the agency's progress in passing fintech legislation, and US federal regulators' broader attitudes toward the burgeoning industry. The remarks offered both cause for optimism and for concern.

A possible dark spot was in Noreika's remarks on the OCC's fintech charter. Since the OCC first proposed licensing non-deposit-taking fintechs as special purpose national banks, the proposal has faced criticism and lawsuits, but the OCC stood firmly behind the proposal's merits and its right to implement it. However, while Noreika again defended the OCC's right to license non-depository companies on Thursday, he also said the agency has not decided whether it will "exercise that specific authority." This is more ambiguous than the OCC's previous stance, perhaps suggesting the regulator believes the measure won't survive such strong opposition.

However, his comments on the broader US fintech regulatory environment were optimistic. As it becomes ever-more apparent that the US' regulatory environment is drastically holding back the growth of its fintech industry, attention is increasingly turning to regulators' efforts to communicate with each other and align their approaches to fintech. Noreika said there's been progress here, as federal regulators are now more willing to engage in dialogue with each other and with fintechs. He added that, in Washington especially, there is a growing desire to reduce fintechs' regulatory burden.

The next step will be to improve cooperation between federal and state regulators.There is evidence to support Noreika's comments that federal bodies are reaching consensus on how to regulate some fintech sectors, such as the CFTC's and SEC's recent convergence on how to oversee initial coin offerings (ICOs). However, the most bitter battle, and biggest stumbling block to progress, is likely to be a power struggle between federal and state regulators. In fact, the CSBS, an association of state bank regulators, has taken the OCC to court over its right to license fintechs, indicating such clashes are already mounting. The outcome of this case will be a valuable indicator of the true progress being made on the US fintech regulation front.

Despite having one of the largest fintech industries in the world, the U.S. is noticeably behind other regions when it comes to one factor crucial to the future growth of this burgeoning sector — regulation.

The U.S. regulatory environment is holding back fintechs and hindering their chances of success.

Outlines the initiatives currently in play from major regulatory agencies.

Considers the future of U.S. fintech regulation and its potential impact on the fintech sector.

To get the full report, subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. » Learn More Now

You can also purchase and download the full report from our research store.